There’s a proposal before the Kansas state Legislature that would repeal the sales tax exemption for religious non-profits and churches.
According to a March 4th legislative alert from the state’s Catholic bishops, House Bill 2549 would require churches and religious non-profit organizations such as Catholic Charities to pay the state’s 5.3 percent sales tax.
The proposal is one before the legislature to make up an approximately $500 million budget shortfall for fiscal year 2011. The bill would raise approximately $169 million each year.
Religious organizations are right to call ‘foul.’ The tax bill alone on property owned by the Church would be monstrous. Yet, they may want to consider one potential benefit of the lack of such an exemption. Current laws have frightened many religious entities into being careful about what they say and don’t say about issues and elections, out of fear of losing their tax exempt status. With their tax exempt status gone, religious organizations would have nothing to fear from speaking truth to power. It seems to me that such an arrangement would give religious institutions a lot more freedom.
What do you think? Which is worth more?
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I’m shocked that I haven’t heard about this issue in my own state before now. While losing tax-exempt status would probably encourage some clergy to take a more “political” stance, this would still be treading a fine line, given that the Church should not endorse specific candidates or parties. Another issue is that the dioceses would have to raise more money to meet the tax. We’re already accused of being too focused on money - this would more likely cause priests to focus on budget issues rather than moral. Kansas is already a fairly conservative state.
The “no political speech” is a federal tax thing, so having to pay state taxes would not exempt them from it unless they want to pay federal taxes also. Frankly I think the church should challenge the constitutionality of that law, except that with the current supreme court and administration I can guess what the outcome might be…
I think Kansas action would set a dangerous precedent in our nation and only encourage other states to follow in trying to take money from church organizations instead of allowing them to be a resource for the other ministries churches offer. If this is successful, you’ll see some ministries end, church property sold (or confiscated?). Churches should maintain their tax exempt status. Churches serve a common good for society as a whole. I think the Kansas legislature needs to go back to the drawing board on this one. I don’t see how the tax-exempt status can be linked to free speech. I know the reality is that organizations often threaten churches when they question their free speech rights. Should free speech be regulated and tied into whether I (or an entity) pay my taxes? I think that’s a little extreme
Living in Wichita, Ks, I find it interesting that this proposal is even on the table. It would be a regrettable move on the part of our legislators, since all the funding that goes into The Lord’s Diner and the many other church funded programs would now have to go for paying taxes on properties owned by each church and religious institution. The state would then be required to provide for those services lost,since the poor are always in need with the hiring of more staff members, providing for staff benefits and everything else that goes along with the having employees. Services that are now being provided by unpaid volunteers of those church based programs.
The Organized Anti-Catholic Left (alas, including some “Catholics”) is savvy and opportunistic. As our bishops awaken and continue to stiffen their resistance to the powerful anti-life popular culture and its political component, they will come under even greater pressure.
Eventually, governments (federal and state) will threaten to cease the billions of handouts the Church receives every year (Catholic Charities USA alone receives $2 billion plus of taxpayer money annually). That would be blackmail, yes, but we never should have taken the money in the first place, even though **true** social justice would allow it under better circumstances. In fact, it’s very possible that we’ve been **bribed** into silence by taking all that money.
As our bishops become more vocal, the Left will intensify its attacks. The Bishops must be ready not only to get out of the government trough, but to pre-emptively **renounce** our tax-exempt status. First of all, it will be our declaration of independence from the sordid sorority of slime that has become our ally in congress (Pelosi, Leahy, Biden, Durbin, et al). And second, it will awaken the laity to the reality of the threat.
Once that happens and the bishops act like bishops, we’ll throw the bums out and move forward from there. But it will never happen until the USCCB and CCUSA don’t depend on them for billions a year any more. And you can add Notre Dame ($60 million a year).
My first reaction to the idea that we could lose tax exempt status was “So what?” Oh, it would hurt. There would be suffering. But, you can’t serve both God and Mammon. So it would likely be redemptive suffering.
That being said, the concept of Churches being tax exempt has a long history and the arguments in favor are many and valid. In many countries, even today, the State Church receives money from a Church tax. The driving reasons behind both are essentially that churches get things done more quickly and more efficiently - so there is a much greater return on that “investment.”
The proposed tax is a SALES tax, not a property tax. What tax liability would the church incur? And as far as tax exemptions frightening the voices of the church, such frightened individuals need to study the lives of the martyrs. The call to service in the church is not for the weak of heart.
a State Church receiving government funds? Oh, Please. No NO NO. Sounds too much like China and setting up too much government interference
Yes, it would hurt if the Churches are no longer tax exempt.
It would hurt the needy in the world. It is a FACT that the Catholic Church gives more to charity and does more for the poor than any other organization. Take the ‘tax exempt’ away, and the State will have to ‘kick in’ instead. So what is the State saving? Nothing. Also it is a FACT that the Church can accomplish more than the State on any matter concerning money. No entity is more wasteful than the government.
Do US bishops fail to speak out for fear of losing tax-exempt status? Or funding for charitable causes?
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If your right eye causes you to sin, pluck it out and throw it away; it is better that you lose one of your members than that your whole body be thrown into hell. 30 And if your right hand causes you to sin, cut it off and throw it away; it is better that you lose one of your members than that your whole body go into hell. (Matthew (RSV) 5)
I can’t imagine anything better happening to the Catholic Church than to lose tax exemptions. It would free the Church from the golden handcuffs of the state. The Church would be free to be herself and to speak the truth boldly. If local parish priests are handcuffed into not preaching the “hard truths” of the Church out of fear of loss of contributions, how can we believe the Church at large is not intimidated in the same way? To keep silent in the face of evil so that we can continue to provide “services for the needy” is a deal with the devil: God does not call us to serve the poor at the cost of prostituting our souls. The Church has a long history of serving the poor without the help of the state. As Pope Benedict recently said, we cannot farm out love of neighbor to the state.
If you want to see what Catholics without the handcuffs of tax exemptions can sound like, watch any episode of “The Vortex” at RealCatholicTV.com
Yeah! I’m so glad someone has finally seen the light on this!!! I think this has long been an excuse for some bishops and priests who hide behind “losing our tax-exempt status” for standing up for the truth! What have they got to lose now? And those who might be “offended” by those bishops or priests who speak the truth - maybe we could get the ACLU to defend us! Wouldn’t Bill Donohue get a kick out of that!
Some time ago I wrote about this very issue thinking about the freedom we would finally have, out of the fearsome shadow of the IRS and the devil’s minion, the ACLU.
Then I visited a religious community and this topic came up. These faithful cloistered nuns were terrified of that happening. Why? Because if the Church loses tax exempt status…they lose their monastery. They lose everything.
I hadn’t thought of that before, and when the good Sister laid some of the numbers, including what they still owe on the land and building/necessary renovations, etc., and then the dollar amount for taxes, well….kiss them goodbye.
We could argue that Catholics would support them, but in reality, Catholics don’t support their own parishes financially, and then whine and scream when their parishes close.
I’m sorry, I don’t have any faith at all in humanity, although I do have faith in God. I pray that if tax exempt status is lost, that people will come to their senses and break open their piggy banks out of pure desperation to keep their parishes open…and maybe that will translate to more support for religious, too.
I hope this dimension is being realized by all Catholics….don’t forget the Nuns and Monks who pray for you day and night, and what they stand to lose.
It’s not an easy issue.
I agree with everything that Julie stated except the comment about the ACLU. The ACLU isn’t perfect, but neither are we. Are they the Devil’s minion? No. They’ve done a lot to help Americans (all Americans). Do they do some stupid things, at times? Yes. But if the ACLU was gone, the government would run all over us. Just a thought.
Yes, if churches lost tax exempt status, that would be a horrible thing.
The clergy already take political stances. We have had politicians address masses to encourage voting for tax levies, with the disclaimer that the church is not endorsing a candidate, (Nod, nod, wink, wink). The reason that they don’t get more broadly involved is that until now they would have risked that tax exempt status. Removing the tax exempt status would allow them to do so more openly.
What part of “render unto Ceasar the things which are Caesar’s, and unto God the things that are God’s” (Matthew 22:21) don’t people understand?
some churches should loose the tax exemption because there is too much underhand stealing with secretaries and treasurers. I know one church where the secretary is also the treasurer and sign all the checks, she also run the food program but list more people than who really came in. Since being the secretary and the treasurer she got a new car and other personal things for herself, so yes the IRS should look into donations coming to churches and where the donations is being spent on. Otherwise the people in charge will take something for themselves. She dont show any checks or bank statements and she voted out who asked questions by manipulating other church members into voting for her.
some of these churches get thousands of dollars in donations from other churches but spend the money on themselves such as the secretaries and treasurers, they are the ones who can write up checks for themselves and pay their bills with the church donations. The IRS is the only one to put a stop to this stealing that is going on, and when a secretary is also treasurer and head deacon, and voted out who will ask to see the books yes there is stealing going on and this woman is asking the state for more money to run the food program but keeping some of the funds for herself, she is dancing all over the church by stealing, but there is no proof so members cant file any claims. The IRS losing millions with people hiding behind the church doors and claiming to be Christians. I hope god intervene and work his karma on this thieving woman who dont even live in the inner city but stealing the inner city people money.
I agree with everything that Julie stated except the comment about the ACLU. The ACLU isn’t perfect, but neither are we.
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